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2021/22 PROPERTY TAX SUMMARY PALMDALE [PHONE REDACTED] www.hdlcompanies.com The City of Palmdale experienced a net taxable value increase of 1.9% for the 2021/22 tax roll, that was modestly less than the increase experienced countywide at 3.6%. The assessed value increase between 2020/21 and 2021/22 was $280 million. The change attributed to the 1.036% Proposition 13 inflation adjustment was $120 million. That accounted for 43% of all growth experienced in the City. Value growth for 2021-22 was impacted by the lower inflation adjustment and was somewhat reduced. Residential value growth was $466.2 million and was 72.7% and accounted for all value growth. Within this residential growth there was $97.4 million in Prop 8 value recovery. There is $183.5 million of Prop 8 value loss still to be recovered. Several value changes among apartment properties were due to late application of exemptions in the current year or in the prior year. The Design Create Explore property was given its exemption after publication of the tax roll in 2020-21 and so is incorrectly shown as a $50.3 million reduction in value for this year. Industrial property values increased by $32.4 million Commercial values grew by $28.8 million and Cross Reference values increased by $10 million Unsecured values make up 5.3% of all values in the City. Unsecured values declined by $220.8 million due to large losses of value for Northrop Grumman ($103.4 million) and Lockheed Martin ($102.4 million). These were, respectively, 28.73% and 35.67% reductions from their values in 2020-21. These two reductions were 93% of the total Unsecured value loss for this year. Growth in home sales strengthened in the summer of 2020 and many cities saw an increase in properties for sale. Sales price increases in 2020 were reflected on the 2021/22 tax rolls. North Bay counties saw mild declines in median prices in late 2019 and early 2020 and Southern California counties saw a flattening of prices in many areas. Homes prices increased in the second half of 2020. Sale prices grew due to low inventory and the declining mortgage rates. These conditions have continued to caused prices to rise in 2021. The median sale price of a detached single family residential home in Palmdale from January through November was $450,000. This represents a $80,000 (21.62%) increase in median sale price from 2020. 2021/22 Tax Shift Summary ERAF I & II VLFAA $-343,807 $16,323,375 % Change Year Median Price D-SFR Sales 2,244 2015 $238,000 2,381 9.24% 2016 $260,000 2,275 10.00% 2017 $286,000 2,043 10.14% 2018 $315,000 2,176 4.76% 2019 $330,000 1,921 12.12% 2020 $370,000 1,962 21.62% 2021 $450,000 Top 10 Property Owners % of Total Net Taxable Value Owner Use Type LOCKHEED CORPORATION 1. Industrial 3.04% $455,048,686 NORTHROP GRUMMAN SYSTEMS CORPORATION 2. Unsecured 2.29% $342,981,449 LANCASTER HOSPITAL CORPORATION 3. Institutional 1.72% $257,630,036 ANTELOPE VALLEY MALL LLC 4. Commercial 1.39% $208,525,723 MGP X PROPERTIES LLC 5. Commercial 0.71% $106,470,330 WALMART/SAMS CLUB 6. Commercial 0.56% $83,864,174 SPECTRUM PACIFIC WEST LLC 7. Unsecured 0.44% $66,367,223 FOREST CITY HARRIS AVM LLC 8. Vacant 0.34% $51,476,211 GOLDEN SPECTRUM PROPERTY LLC 9. Commercial 0.31% $46,681,961 TARGET CORPORATION 10. Commercial 0.29% $43,586,081 Top Ten Total $1,662,631,874 11.10% ---PAGE BREAK--- Real Estate Trends [PHONE REDACTED] www.hdlcompanies.com Home Sales While a reduction in the number of single-family home sales was experienced in many areas and sales price changes reflected modest declines or increases in 2019 and early 2020, these market trends were impacted by COVID-19 beginning in March 2020. The number of home sales plummeted as potential buyers stayed home. After major reductions in the number of sales in April and May, sales of detached SFR rebounded and statewide the number of sales increased by 3.5% over 2019. Statewide, the median sales prices for July 2021 increased by 21.74% over July 2020 and were up by 33.42% over July 2019. The statewide median time on the market for detached SFR was 8 days in July 2021. The 30-year, fixed-mortgage interest rate averaged 2.71% as of September 2, 2021 down from 3.16% in June 2020. Units Sold June-2020 Units Sold June-2021 % Change % Change Median Price June-2021 Median Price June-2020 All Homes Imperial County 143 141 -1.40% 12.00% $250,000 $280,000 Los Angeles County 5,148 8,178 58.86% 22.48% $645,000 $790,000 Orange County 2,616 4,106 56.96% 16.13% $775,000 $900,000 Riverside County 3,912 5,154 31.75% 18.94% $425,000 $505,500 San Bernardino County 2,655 3,534 33.11% 19.73% $367,500 $440,000 San Diego County 3,621 4,816 33.00% 25.00% $600,000 $750,000 Ventura County 797 1,113 39.65% 24.39% $615,000 $765,000 Housing Affordability Remains a Challenge Throughout California The COVID-19 pandemic inhibited property sales in the first quarter of 2020 but for most communities it did not significantly impact 2020-21 assessed value growth from transfers of ownership. The stay-at-home orders, business closures and other economic impacts affected 2021-22 growth by reducing the annual CPI adjustment from the maximum 2% to 1.036%. New construction already underway did not see a decline, however, the shortages of building materials affected new construction starts in the second half of the 2020 and into 2021. Gains in median housing prices do not suggest that there is any potential for county assessors to apply Proposition 8 value reductions on single family homes. While assessed values on the 2020-21 rolls were not impacted by the pandemic, the effects of the pandemic are reflected in large increases in assessment appeals activity for that fiscal year. The chart below reflects 2019-20 and 2020-21 values under appeal by property owners in select counties as a percentage of total taxable values reported in each year. 0% 2% 4% 6% 8% 10% 12% Alameda Contra Costa Los Angeles Orange Riverside Sacramento San Bernardino San Diego San Mateo Santa Clara Solano Ventura % of Value with Appeals Filed 2019-20 % of Value with Appeals Filed 2020-21 Comparison of Value Under Appeal By County 2019-20 to 2020-21, as a percentage of total taxable value